Chattanooga (TN) Auto Loans

Getting a new car without help from a loan or lease is pretty rare nowadays. Most often, the bank keeps a lien on the vehicle until it has been paid off. You will need to carry comprehensive insurance until the lien is released, and your interest rate will depend largely on your credit score. Why would you want to spend your time applying for financing at the lender or dealer when you can apply right now online?

Let a vehicle finance professional in Chattanooga help you obtain financing, answering your questions along the way.

Auto Finance Rates in Chattanooga

What will your interest rate be? The truth is, your interest rate can vary hugely based on your credit, among other things. The rates shown below are only for informational purposes. They are not advertisements, and your exact rate could be very different.

Credit Rating

New Car

Pre-owned Car

Excellent

3.2%

3.5%

Good

4.4%

4.9%

Average

6.1%

7.4%

Subprime

8.5%

10.0%

Bad

13.3%

16.9%

Very Bad

15.1%

19.2%

Used Car Auto Loans in Chattanooga

Car manufacturers are only really interested in selling brand new vehicles. However, used cars and trucks are more affordable in the long run, and they don’t lose value so quickly. Here, we review the cost of a loan for a vehicle that’s new versus one, two, or three years old.

Age

Price

APR

Months

Payment

Interest

Total Cost

New

$23,000

6.00%

60

$444.65

$3,679

$26,679

1 Year

$18,400

7.50%

60

$368.70

$3,722

$22,122

2 Years

$15,640

7.50%

60

$313.39

$3,164

$18,804

3 Years

$13,294

7.50%

60

$266.38

$2,689

$15,983

A used car is a great option, regardless of whether you’re financing or paying cash. Ordinarily, you can get a car loan for a vehicle that is up to 10 years old. Mileage limitations may apply.

Bad Credit Car Loans in Chattanooga

Credit score plays an important part in credit approval and annual percentage rate. To put it succinctly, your credit score is used a barometer of risk. Before the web, you might be declined at a variety of banks or dealers before obtaining financing.

Buy here pay hereloans are a second option. The negatives are considerable, and they include outrageous rates of interest and rigid terms.

It is best to avoid these dealers if possible, getting an auto loan via the web. The down payments are cheaper, as are the interest rates, and the service is typically a good bit better.

Can a Car Loan Improve Your Credit?

Gradually, the payments made on an auto loan can heighten your credit score . There’s no instantaneous spike in your FICO score. Rather, it should increase gradually with your payments. It’s smart to register for automated payments, basically to be sure you don’t skip any payments.